The cotton spinning industry is at one of the worst recession period now. It can only better from here. It is the best time to start a spinning mill.
Instead of starting a new mills, go for a stressed mill at a fraction of cost and turnaround it.
1.Approach NCLT.
2.Shortlist your takeover candidates. You may select Nagpur or Kolhapur.
3.Go for one time settlement with the lenders, and the fresh equity infusion.
4.Keep your capital structure reasonably.
5.Remember cotton price vary 28 to 40% in a year. Keeping cash to take advantage purchase timing will always help.
Enjoy the business. You have created wealth for your future generations.
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